Basic Info for Novice Credit Card Users
Getting your first credit card can be an exciting but daunting experience. The proposition of temporary free purchasing can become too much for cardholders, resulting in a downward spiral of debt. To help you control your shopping impulses, here are a few tips for using your new credit card.
Rates & features
Avoid cash advances at all costs
Cash advance interest rates are incredibly high, ranging from 18-23% p.a. Use this option sparingly and save it for emergencies.
Balance transfer offers don't give interest-free days on purchases
If you've decided to take up a balance transfer offer, you won't receive any interest-free days on purchases until you've repaid your full outstanding account balance.
Pay back your credit card on time - Use direct debit
The temptation of 'free' spending and not having to pay until later can lead to late payments. Set up a direct debit from your bank account so your payments are never late.
Monitor how much you are spending
Regularly check how much your outstanding balance is to ensure your next pay check can cover the amount. Download your bank's mobile application and save their website to your browser bookmarks.
Note down your provider's emergency contact details
Having your bank's important contact numbers will provide you with peace of mind in the case that your card is lost, stolen or you need to make an urgent inquiry.